I pushed it up and tried settings 3,4 and 5 (out of 7). Three I found usable, with a bit more crispness to the image, but a slightly noticeable jump in "noise". 4 and 5 settings respectively increase the crispness of the image, but also start adding a fair amount of noise (artifacts).
From a practicle standpoint, I would suggest using either 2 or 3. I found 4 to be a little two noisy. To put this in perspective, using the 4 setting, seemed to be a touch more noisy than when I used the Epson UB projector with their two settings at 1 and 2 (Super-resolution), respectively. Thus, 4, you'll probably like for sports, but many will avoid using that much for movies.
For your consideration, our usual close up images
Top left: Panasonic PT-AE4000, Top Left Center - JVC DLA-RS25, Top Right Center - Planar PD8150, Top right - Mitsubishi HC7000
2nd row left: Epson Home Cinema 6500UB, left center: Sanyo PLV-Z3000, right center: Optoma HD8000, right: InFocus IN83
Note, starting with this review, now that my DTS test disc died, for this sharpness demo, we will be using a closeup of the PS3 system screen, showing the Video icon
So far, we refer to all 1080p projectors as either average, or "sharper still"
All that said, when watching movie content (film based) there won't be a great, obvious difference (at normal viewing distances) between the Panasonic and most of the "sharper still projectors. It's when you switch to pure digital content (like all that eye candy on Discovery HD, or a good HDTV sporting event, where the difference appears greater.
I do like the Panasonic's dynamic controls, and would recommend using them at least a little, for your digital content. Play with the settings, figure out what you like. I find such controls, on the PT-AE4000, the Epson Home Cinema 8500UB, JVC RS20/25, and other projectors to be of definite benefit, at least some of the time. I found my older JVC RS1 to be softer than I like. JVC's detail enhancement settings added to the RS20 and RS25, by comparison definitely come in handy for my sports viewing, in particular.